Mercury Insurance Taps Steve Bennett to Lead Climate Risk Science Team

Mercury Insurance has appointed Steve Bennett as its senior director of climate and catastrophe science, tasked with leading a team focused on risk mitigation strategies in the property and casualty insurance sector. This strategic move aims to enhance resilience to severe climate-driven weather events impacting insured properties. Mercury's approach differentiates itself by actively engaging with homeowners, municipalities, and governments to create more insurable and resistant risks, particularly in areas prone to wildfires and hurricanes where other insurers have withdrawn coverage.

The company has seen success in maintaining policy availability in high-risk regions, notably being the first major insurer to write homeowners coverage in Paradise, CA, following the 2018 Camp Fire devastation. This was achieved through collaborative efforts involving local and state authorities and the Insurance Institute for Business and Home Safety (IBHS), which resulted in new zoning and construction standards tailored for wildfire resilience.

Mercury's leadership emphasizes a nuanced, science-based risk assessment model considering geography, wind patterns, building materials, and risk concentration rather than blanket exclusions of zip codes. This targeted risk management approach enables continued coverage offerings even in challenging environments like Pacific Palisades and Altadena, which experienced recent catastrophic fires.

The insurer acknowledges the necessity of multi-stakeholder collaboration among homeowners, government entities, builders, and planners to rebuild with risk reduction in mind. Bennett's extensive experience in climate risk and extreme weather positions Mercury to better navigate the evolving challenges of catastrophe risk in the insurance marketplace.

This initiative reflects a broader industry shift towards integrating science-driven methods and mitigation investments to sustain coverage availability and affordability amid escalating climate-related risks. Mercury's commitment includes ongoing monitoring, adaptive risk evaluation, and proactive policyholder engagement to mitigate losses and enhance market stability in vulnerable regions.